US retail sales slumped in December, dragged by sales at department stores and gasoline stations – Copyright AFP Sam Yeh
Tailoring the customer experience to Gen Z starts with understanding the social and economic upheaval they have experienced all their lives, their citizenship as digital natives, and their passion for advocacy.
This demographic knows the impact of their influence and they care about the state of the world, which has and will continue to have impacts on the brands they support – meaning that every business organization must adapt to remain relevant.
Julia Eisenberg, strategy and insights EVP at Sago, shares insights on what is critical to Gen Z, why old school marketing is no longer effective, and what brands must do to embrace the next generation.
Digital Journal: Is there a formula that brands can follow in order to stay relevant to Gen Z?
Julia Eisenberg: A personalized customer experience is required to drive brand credibility and loyalty today. This strategy will look different depending on which generations are among the target audience. Since Gen Z is so digitally fluent, brands immediately feel challenged to think outside the box, but most miss the first step: understand how Gen Z thinks before predicting what they’re thinking about.
DJ: What is it that sets Gen Z apart from other target audiences and how can brands make sure they’re targeting Gen Z appropriately?
Eisenberg: Tailoring the customer experience to Gen Z starts with understanding the social and economic upheaval they’ve experienced all their lives, their citizenship as digital natives, and their passion for advocacy. Gen Z is a smart and caring populace with others-centered values. They are unapologetically diverse, know the impact of their influence, and feel concerned about the state of the world.
As an industry, marketers are already more accustomed to guessing what their customer wants with preexisting data rather than simply talking to them. By asking questions like “why are you buying this product?” brands unlock the solution to third party cookie loss and build a stronger relationship with Gen Z. This process can be streamlined by tapping into marketing strategies that leverage cognitive psychology, like focus groups and surveys, too.
DJ: What do you think is the most important aspect to know when targeting Gen Z?
Eisenberg: To engage with a brand, Gen Z consumers must feel seen, heard, and known by it. They want to see how the business is run and tell the brand what they think about its ads, products, and profits. Gen Z is open to brands that share their values, but loyalty is earned and lost moment-to-moment. Gen Z is willing and even eager to amplify satisfaction, but a brand that ignores a cause risks Gen Z ignoring the brand. A brand that exploits a cause can expect Gen Z’s swift derision.
DJ: What’s the key to turning Gen Z brand awareness into brand loyalty?
Eisenberg: Gen Z’s attention, engagement, and loyalty is earned when brands are clear about their purpose beyond profit. Transparency into how the business is run and interactive, social mediums for dialogue are table stakes. Brand narratives have a bigger impact with Gen Z than singular messages, and brands should offer many entry points to allow Gen Z to self-select the way they engage. A self-aware brand state is vital to a positive customer experience for Gen Z.
